Cost of Crypto License in Cayman Islands with bank account in 2025
Offshore Crypto Company Registration in Cayman Islands
Looking to launch your crypto venture offshore? The Cayman Islands is one of the most sought-after jurisdictions for cryptocurrency businesses. In this comprehensive guide, you’ll learn everything you need to know about offshore crypto company registration in the Cayman Islands—from legal structures to licensing, tax benefits, and compliance.
Minimum Requirements for Offshore Crypto Company Registration in Cayman Islands
1. Legal Entity Formation
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You must incorporate a Cayman Islands Exempted Company or LLC, which is suited for international operations and crypto-related services.
2. Registered Office in the Cayman Islands
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Every company must maintain a physical registered office address within the Cayman Islands, typically provided by a licensed corporate services provider similar to Consultrio.
3. Directors and Shareholders
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At least one director and one shareholder are required. These can be individuals or corporate entities, and there is no requirement for local residency.
4. Company Secretary (Optional)
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While not mandatory, appointing a company secretary is recommended for better governance and compliance tracking.
5. VASP License Approval by Cayman Islands Monetary Authority (CIMA) under the VASP Law
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If your company will offer virtual asset services (e.g., exchange, custody, issuance), you must register or apply for a license with the Cayman Islands Monetary Authority (CIMA) under the VASP Law.
6. AML/KYC Compliance
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Your company must implement anti-money laundering (AML) and know-your-customer (KYC) policies in line with Cayman regulations, including appointing a Compliance Officer and Money Laundering Reporting Officer (MLRO).
Registration process step by step
01
Preparation & Documentation
We work with you to create a comprehensive business plan and financial projections and Our team prepares all required incorporation documents and ensures compliance with local VASP regulations set by CIMA in Cayman Islands.
02
Application form and Submission to Registrar (3-4 days)
We submit your application for company registration and applicable crypto license to Cayman Islands Monetary Authority (CIMA).
03
Approval and Issuance
Once the application meets all requirements set by Cayman Islands Monetary Authority (CIMA), your company and VASP license are issued promptly.
04
Bank Account Opening
We assist in opening offshore bank accounts tailored to your crypto business needs.
05
Ongoing Support
From regulatory compliance to operational guidance, Consultrio remains your trusted partner for continuous business support.
1. Detailed Business Plan
A comprehensive business plan is required and must clearly outline:
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The nature of the virtual asset services you intend to provide (e.g., exchange, wallet, issuance)
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Target markets and user base
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Revenue model and fee structure
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Marketing and user acquisition strategy
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Forecasted financials (P&L, cash flow, break-even point)
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Operational roadmap and scalability plans
2. Compliance with AML/CFT Regulations
You must have a robust AML/CFT compliance framework, including:
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Appointment of a Compliance Officer and Money Laundering Reporting Officer (MLRO)
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Written AML/KYC policies
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Customer due diligence (CDD) procedures
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Ongoing monitoring and suspicious activity reporting mechanisms
3. Risk Management and Governance
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A VASP must maintain proper risk management systems, internal controls, audit procedures, and operational transparency. CIMA expects a clear corporate governance structure that includes decision-making protocols, conflict-of-interest policies, and regular risk assessments.
4. Fit and Proper Management
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CIMA requires that all directors, shareholders, and senior officers pass a “fit and proper” test, demonstrating competence, integrity, and relevant experience in fintech, crypto, or financial services.
5. Economic Substance and Local Presence
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Although there is some flexibility, CIMA may assess whether your Cayman entity has sufficient economic substance—meaning real activity such as decision-making, local staffing, or infrastructure may be necessary, especially for licensed VASPs.
6. Annual Reporting and Regulatory Filings
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Once licensed, VASPs are required to submit annual returns, audited financial statements, and compliance certifications to CIMA. Regular updates must also be filed for changes in ownership, directors, or key operations.
7. VASP Application to CIMA
You must submit a formal application to CIMA, including all supporting documentation. The application must match the appropriate licensing tier:
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Registered VASP – for lower-risk services (e.g., software-only wallets)
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Licensed VASP – required for higher-risk activities like operating a crypto exchange or custodial service
8. Financial Requirements
CIMA expects applicants to demonstrate adequate financial resources to operate securely and responsibly. This includes:
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Minimum Capital Requirements:
While there is no fixed minimum in the legislation, CIMA requires capital proportional to the scale and risk of the business. For most VASPs, this typically ranges between USD $100,000 to $500,000. -
Proof of Funds:
Applicants must show proof of capital through audited financial statements, investor commitments, or bank statements. -
Liquidity Buffer:
VASPs should maintain sufficient working capital and reserves to cover at least 6–12 months of operational costs. -
Insurance (Recommended):
Cybersecurity insurance or professional indemnity insurance may be required depending on service type.
Key Requirements to obtain a VASP License from Cayman Islands Monetary Authority (CIMA)
Our international banking partners, Consultrio, can help you open a bank account for your crypto company in Cayman Islands
Why Choose the Cayman Islands for Your Offshore Crypto Company?
The Cayman Islands has embraced digital assets through the Virtual Asset (Service Providers) Law (VASPL), providing a clear, modern framework for licensing and oversight. This makes it one of the few offshore jurisdictions with well-defined regulations tailored specifically to crypto businesses.
Pro-Crypto Regulatory Framework Under the VASP Law
One of the biggest advantages of setting up a crypto company in the Cayman Islands is its tax-neutral environment. There are no corporate, income, capital gains, or withholding taxes on companies, which allows crypto businesses to retain more of their earnings and reinvest in growth.
No Corporate Tax for Offshore Entities
Backed by a legal system based on English common law, the Cayman Islands offers a stable, transparent, and internationally respected business environment. Its credibility as a financial center gives investors and partners greater confidence in companies incorporated there.
International Credibility and Common Law Foundation
The Cayman Islands provides robust legal protections for business owners and shareholders, ensuring confidentiality and safeguarding assets. With strict privacy laws and no public registry of shareholders, your company’s ownership structure and financial details remain secure and discreet.